Bears and Blackberries (and Local News)

I spent last week trying to "get lost" in the wilderness of Montana...  and did a pretty good job of it.  (OK, it's a little sad to admit that the BlackBerry does work in all but the most remote places.) 

There certainly are mental benefits to unplugging from the world for awhile, but eventually you want to know what's going on around you.  With a 21-year-old son and a 17-year-old daughter in tow, we knew this was likely one of our last family vacations like this as a group.

Driving cross-country, we shared stories and listened for hours to XM radio while crossing the endless prairie of South Dakota.  Bluegrass music?  Check.  Coffeehouse acoustic?  Check.  Fox News?  Oh wait, skip that.  But when storm clouds turned black, we hit the FM button to get some local weather.  A crackly, older voice told us about hailstones the size of baseballs 50 miles behind us.  Thank goodness we missed that. 

In a week where grizzly bears attacked campers in their tents outside Yellowstone, we wanted to read a local newspaper to learn more about the story.  (Although there were no bears at our hotel.)  And yes, we watched a local newscast or two just for fun.  We learned things about trout, pine beetles killing trees, a wildfire under control and tomorrow's weather. The stuff that makes a community in Montana. 

No matter where you live or travel the need for localism endures.  Hearing local people report local news is absolutely essential to get a sense of place.  In Montana, knowing about bears and that new business coming to town seems way more important to the future vitality of local television than having the rights to air Dr. Phil. 

No matter what technology comes along, I'm convinced that the people who tell local stories in their communities have a solid future. 

Now, it's time to get "plugged in" again.  Although here in the midwest I'm going to miss those bear stories on the local news.  

- John Altenbern 

Targeted Studies the Trend in Media Research

It makes sense. The trend we're seeing away from looser, broad "everything" research to tighter, more focused studies targeted to specific issues. For example: how to recruit the early evening cable news audience to local news; messaging on the Web or in text alerts to recruit viewers to local news; which kind of topical promotion works best for each night's specific primetime lead-in audience; content that's most appealing to "information seekers" in the morning... to name a few.

Station budget constraints are part of the reason for the trend, but changing lifestyles are too. Viewers today are time starved but plugged into technology. So they're more willing and able to view a sample of the newscast, or new anchor candidates, or a different promotional approach... give their opinions and move on.

And the great thing about it is stations seem to be more focused too. They take their results and zero-in on a time period or one goal, like launching a new image campaign, or even targeting one segment of the audience. Many see immediate results. The more focused the study, the more specific the findings, which makes the tactical decisions easier for stations.

Yes, I'd say it's a positive trend. That doesn't mean stations shouldn't still measure the competitive environment of their markets or ask big picture questions. Effective positioning in today's media world is more important than ever. But if you want to focus on an issue and see a real return on a small investment, try one of our small, targeted studies. If I had to give it a name, I'd probably call it CJ&N Pinpoint Research. Hmm. Maybe not.

- Mary Beth Marks

News viewers are a lot like Netflix customers

No one will ever accuse me of being a very early adopter of new technology. But I think I understand now why Blockbuster video is going broke. My kids encouraged me to sign up for a Netflix trial, and instead of asking Netflix to send me DVD's in the mail, I hooked up a computer to the television set and used a wireless broadband connection to watch instantly. It works like a charm. HD movies, recently run television shows, all the series like Madmen that I never had time to watch - they are all there. Streaming works without a hitch. I can pause the movie and come back to it or quickly "rewind" to see that great scene again.

The last time I went inside a down-at-the-heels Blockbuster store I rented a movie and paid $4 for the privilege. They told me I owed them another $3 for a rental my teenager didn't return on time two months ago. What a lousy customer experience. It's almost what I will pay now for a month of Netflix service, with unlimited viewing.

It reminds me once again what we have seen for many years in consumer research. Choice and convenience win out every single time. When television stations in a market seem like dull carbon copies of one another, is it any wonder the audience gets bored and seeks out something new? If the only flavor on the menu is vanilla, I want to be the guy selling pistachio. And if I can be alone in a time period, or offer a product that has some unique advantages that give viewers a true choice, so much the better.

 - John Altenbern

Trucks, Pigs and Local TV News

There were two odd developments recently in the "branding" world that caused me to say, "Huh?"

Chevrolet issued an internal memo to employees telling them to stop using the shorthand name, "Chevy."  The author claimed the car company needed to have a single brand identity that was consistently communicated - Chevrolet.  When the memo leaked out, all those Don McLean fans from the 1970s howled.  How can you drive your "Chevrolet to the levy"?  Isn't this the company that famously built a model called the "Chevy II?"  After 24 hours, the company retracted the memo, saying it was proud of its "Chevy" heritage.  In other words, "never mind."  It was a bad idea from the marketing department. 

At almost the same time, here in Iowa the pork producers decided it was time to move on from their famous tagline, "The other white meat."  They're looking for a new brand identity after almost 30 years and with sales of pork sinking lower than the proverbial hog's belly. 

A "brand expert" made the comment that the pork producers were abandoning one of the most identified marketing messages ever created. His argument:  brand messages are a connection with consumers, and not intended to lead to actual sales. 

There are a couple of lessons here for television people like us.  Why would you ever want to get away from a nickname that is the audience's most sincere form of flattery?  In some markets, the vernacular is to refer to stations in some "shorthand" fashion: 'PVI is definitely Channel 6 to people who live in Philadelphia.  No one (even Chevrolet) should want to stamp out that sort of reference. 

But does a slogan or tagline need to change if ratings are sinking like pork bellies?  Maybe.  Something is wrong if you are losing customers and your competitors are gaining, but it probably goes a lot deeper than the slogan itself.  I don't know that saying "Chevy" or recognizing the "other white meat" slogan will sell more cars or pork ribs, but discarding well recognized taglines and slogans shouldn't be done lightly. 

As we've said in research presentations, when a slogan is evaluated and found to be weak, you can certainly change it - but recognition for the new slogan will be exactly zero. A new slogan by itself won't raise ratings.  Giving slogans real meaning and emotional value for the audience is a tougher, but more rewarding proposition. 

Someone tell GM and the pork producers they need to scratch below the surface and get to the meat of the issue. 

Don't Be a Railroad

If you've ever taken a marketing class, then you probably know the example about the passenger railroad industry and how it contributed to its own downfall by defining itself too narrowly (Marketing Myopia, by Theodore Levitt). It continued to focus on being in the railroad industry rather than the transportation industry. It didn't evolve and adapt to a changing world.

It's time to drag that example out again and apply it to local television... well, any media really. Are you in the local television business or are you in the business of providing local information? It seems as if many stations are still narrowly defining themselves, and then have a few things going on the side - like a website or cell phone delivery. These things are seen as separate add-ons.

But if you want to survive this technology/media revolution, it's going to take full integration and an all out culture change. Survival in the future (right now, actually) will require embracing a broader consumer-focused definition. Now... who's still working at a television station?

Brush up on Marketing Myopia and why it's so deadly to your business by reading this article. http://management.thinkahead.net.in/marketing-myopia-definition-example-and-explanation-theodore-c-levitt-theory-of-marketing.html

-Donna Petersen

It's Time to Make a Change

Dad always told me not to get too attached to "things," especially cars. They're just machines, he said, that can be replaced - usually with something newer and better.  Almost 20 years ago I bought one of those fancy new Dodge minivans. They were newly restyled: spacious, yet sleek and modern. I was proud of that van, and the first weekend I had it I drove it 350 miles to show my dad.  Dad had brain cancer, but he almost literally crawled to his front porch, looked to the driveway, rasped out "Nice car," and returned to his bed.   Those were the last words I heard him say. So much for not getting attached to a "thing."

I've been driving that van for 19 years. Oh sure, I wanted something new. I wanted fancy electronics and those new safety features. But I just never seemed to get around to it. Buying cars for other family members and paying for my daughter's college tuition always seemed to be the higher priority. Besides, despite Dad's words of caution, I had grown attached to it.

Over the past few weeks, all the "character traits" of the car started to bug me.  The small dents. The rust spots. The missing hubcap. The hood ornament flopped on its side. And I started to see the van for what it was.  Functional. Reliable. But outdated. Inefficient. Yucky.

It was time to make a change.

In many TV newsrooms, it's time to make changes. New technology, and the sleek new practices that have evolved from that technology, have made some traditions look outdated in comparison. New economics have changed the environment, and conservation is more important than ever.  Maybe it's time to lose that attachment to some of the old things in your newsroom, and to old ways of doing things.

I have to go now.  I'm heading out to my new car to program the NAV system, synch up the cell phone, and set my favorite satellite radio stations.  Dad liked new things; he would have approved.  

- Mike Anderson

An Upbeat May for Local Television

As a history fan, I often think of events in the past that seem to apply to current happenings.  Back in the 1930's, F.D.R. supporters passed out lapel buttons to Depression-weary Americans that said, "The worst is over, business is better." That seems to be the common sentiment at television stations these days.

I've been in a half-dozen stations in the last several weeks - in all parts of the country.  While no one is rejoicing at their good fortune, the gloom and doom phase is definitely lifting.  Managers are thinking about the future again, not just trying to deal with day to day problems and cutbacks. 

But as the Great Depression turned a whole generation into compulsive "savers," there will be lasting effects in the local television business because of what we've all been through.  Paying big bucks to a syndicator for an untested lead-in program now appears dangerous.  Hiring that expensive out-of-town anchor to make a splash seems like an old, quaint idea. 

At the same time, making smart and cautious bets on the future seems like the right thing to do. Creating a new local program that's "advertiser friendly," buying everyone an iPad or iPhone, and using research to figure out how to squeeze an extra demo point out of a lead-in makes perfect economic sense.  And it seems in-tune with where this business is heading.  It's facing the future with some common sense. 

So as May sweeps begin, the mood is upbeat.  It's not only business that's better - so are attitudes.  I'm looking forward to May.

- John Altenbern

What's Your Digital Identity INSIDE Your TV Station?

You're a TV station, right?  All this stuff about Facebook and Twitter and even your web site itself... that's all just extraneous busy work that makes sure you keep up with the fads.  Right?  Uh, we don't think so.

Maybe you saw the good news this week about about the economics of the Internet (a TVB/Borrell study just out says local online ad revenues for TV stations is expected to increase 21% in 2010). But this isn't about cash flow. It's about your identity as a dominant provider of content.

We think the stations that survive to the next stage of this industry's evolutionary cycle will be those seen as powerful and reliable information providers ... seen by the consuming public as being better at it than the other stations in town. WCCO in Minneapolis will likely be a survivor. Check out this blog from MinnPost.com that takes a look at how WCCO has such a strong online presence. Here's an important excerpt from writer David Brauer's blog:

WCCOers -from reporters and weathercasters to producers and promotions people -just seem more jazzed about the future than your average news organization. Twitter seems to crackle with station personnel chattering about the station's latest efforts, seeking and seeming open to feedback, talking up interesting efforts they see elsewhere. Almost every organization has such folks, but ‘CCO's cadre seem to have achieved critical mass, emitting an esprit de corps enthusiasm more authentically charming than those hoary "we all love each other" promos.

Brauer made note that WCCO is the only station that has an easily recognizable "digital mastermind" as a driving force. About three weeks ago, the CJ&N Newsletter distributed an article to our clients looking at how two local TV stations, WNEM in Saginaw and WJZ/Baltimore, have made huge strides in signing up Facebook fans (WJZ now has more than 44,000 fans!).  Based on our talks with the news directors of both stations, we realized one thing the two stations had in common was a sharp and progressive digital content manager.

To have a strong digital identity in your market, you must first have a strong digital identity inside your own TV station.  Your long-term survival could depend on it.

- Mike Anderson

Local TV News a Commodity? Not hardly.

There's a lot of conversation, consternation and doomsday warning out there that local television news has become a commodity much like bath soap, airlines and athletic shoes (although those examples are arguable as well). The premise is that all newscasts are basically the same and your only path to success is through marketing. I have spent my entire career in marketing and as much as I'm flattered by the importance this train of thought places on what I do, I disagree with the premise. And here's why.

Successful local television newscasts are far from being a commodity. In every one of them, there is something in the newscast that is different and appealing. Whether it's talent, unique content elements, and/or presentation style, there are product differentiators that marketing alone cannot create or sustain on its own. One could argue, if all local newscasts are the same (a commodity), then the biggest determining factor for success should be lead-in programming. While we all know lead-in programming is important, how do you explain all of those markets where the highest rated 5:00 p.m. newscast does not follow Oprah, or the highest rated late news is on the NBC affiliate?

Along with the theory that all local television news looks the same, comes the warning that local news promotion also looks the same. And, therefore, news marketers need to take lessons from consumer goods advertising - how a commercial for a brand of bath soap separates that brand from the rest of the pack, or how an athletic shoe commercial created brand loyalty. First of all, there is danger in looking at one commercial out of context, in isolation and drawing vast generalized conclusions about its effectiveness.

Second, let's face it; television news is different than consumer goods. It's easier to purchase than soap or athletic shoes - you don't have to get in your car, drive to the store, and look at an endless display of similar products, relying on distant commercial images and product packaging to make your buying decision. Also, unlike all other consumer goods, our television advertising (promotion) is able to give consumers a real taste of our product, something other television advertisers cannot do with their commercials. That's why they have to rely on other advertising techniques to connect with consumers, hoping the consumer will remember them when faced with an opportunity to buy their product in the future. A television ad can't let you sample how good that Keebler cookie tastes, or how comfortable those Dr. Scholl's inserts are, but your promos can actually let them sample your newscast.

In addition, we have to remember that unlike the purchasing process of most other goods and services, our customers have total control and can stop the process anytime they want. You buy a car; you're stuck with it until you can sell it. But if you tune into a newscast that doesn't fulfill your expectations or desires, you change the channel, you stop the purchase mid-stream and the station loses a customer. It's as simple as that.

Finally, it is important to recognize that the success of local news is defined by repeat customers and not by a single purchase. Viewers have to like what they see (your product) and come back for more. There hasn't been an image promotion created yet that will make viewers sit through a lousy newscast for a full 30 minutes, AND come back tomorrow.

That's why the emphasis on the product is so important. Research your market, find out what viewers want, create ways to differentiate your product, and then deliver...every single day. And finally, recognize that an important goal is REPEAT CUSTOMERS. You can't promote what you don't deliver, and can't trick viewers into watching... not more than once.

-Dave Tressel

What Does Fed's Broadband Plan Mean for Local TV?

I would love a broadband connection at my house that pumps out 100 mbps.  (My cable connection is now 8.26 mbps and I think it's pretty fast.) 

This week the federal government will announce a plan to make the information highway the autobahn in the next few years - in part by taking spectrum space away from broadcasters and using it to beef up the internet.  It's a bitter pill for broadcasters, who have been favored in the regulatory world for the past 60 years.  Is the FCC about to shunt over-the-air television to the spectrum sideline and diminish it as a medium forever?

I don't think so. The value of broadcast TV is just too high. I have a hard time believing this is as simple as the bureaucrats wheeling out a new plan for the future and everyone applauding because they can download movies more quickly.  It comes down to two key groups:  consumers and politicians. 

Consumers because Americans watch more TV than any other group in the world, and the system responsible for most of that content is broadcasting.  The audience has even confirmed that choice in recent years by going out and purchasing expensive HDTV's - even in the midst of a recession - in order to see the best quality signals, whether they are delivered on cable, satellite or over-the-air. 

The spectrum required to launch mobile TV is hanging in the balance with the government's new broadband plan.  Who better than broadcasters can develop a service that would put local over-the-air television on your cellphone?

Then there are the politicians.  Overwhelmingly,  people in this country get their political info from television.  That includes finding out about candidates trying to get elected who advertise on TV.  Do politicians have the will to let down the medium that plays a key role in putting them into office?  I doubt it. The FCC's plan may have to change given the political realities. 

Sure, I want a faster, better internet and there's only so much spectrum to go around. But first, you'll have to pry the remote control out of my hand.

-- John Altenbern